AN SSESSMENT OF LAND SUPPLY FOR HOUSING

TOWARDS AN EFFICIENT URBAN LAND MARKET IN

ADDIS KETEMA SUB – CITY (THE CASE OF WOREDA08)

A SENIOR ESSAY SUBMITTED TO THE PROGRAM OF ECONOMICS

FULFILLMNET OF THE REQUIREMENT

FOR BA DEGREE IN ECONOMICS

BY: TESFAYE ERWORO

ADVISOR: SAMUEL T

WOLITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

ECONOMICS PROGRAM

WOLAITA SODO, ETHIOPIA

JUNE, 2013
 ABSTRACT

This study assessed land supply for housing towards an efficient urban and market in Addis
Ketema sub-city Woreda08, Addis Ababa. The study examined the accessibility of plots of land
for housing by all residents. The study focused on the current land policy and regulations, and
institutional capacity of land administration of Woreda08. The study drew respondents from
Woreda08 households and land experts of the land administration department in Woreda08 and
Addis Ketema sub city administration using both probability and non probability sampling
techniques, Questionnaires, interviews and secondary sources of documents were used to collect
relevant data pertinent to the study. The findings of the study indicated that 73% of the
respondents live in rented houses. Out of these, 56% of respondents blamed this on
inappropriate land policy and regulations. The study identified causes of inadequate land supply
for housing in Woreda08 of Addis Ketema sub-city as constituting the land market distortions, in
adequate institutional capacity of land administrations and implementation gaps of land policy
and regulations. These cause led to shortages of housing. The proliferation of sums and to the
poor collection of land lease venue. The study recommends a system of land supply that covers
all income groups of the sub-city and building the capacity of woreda land administrations.
Study also suggests taking in to consideration of the poor households in the implementation of
urban land policy.

ACKNOWLEDGEMENT

Above all I would like to praise the heavenly father the all might GOD, for his protection and
keeping me in safe throughout my life. Them my deepest gratitude and thanks goes to my
advisor Mr. Samuel T for his an reserved advise to finalize this study. My deepest and hurtful
gratitude is also to my family (My Mother, Almaz Alemu Sladeregechlgn Lenate Min Ekeflat..)
my brother Teklu L (KT), my sister Weynshat L, Geremech L ,Endalkachew A, FL ,ME and all
Left family.

Finally I would like you acknowledge all my support from finance, moral, direct and indirect
assisted.
 LIST OF ACRONYMS

AU African union

ECA United Nations economics commission or Africa

CIA Central Intelligent Agency

CSA Central statistical Agency

ESCAP United nation economic and social commission of Asia and the pacific

UDD Urban development Department

UN.HABITAT united Nations Human settlements program

 CHAPTER ONE

1. INTRODUCTION

Now a day’s According to kamlesh M. 1992 world total population increasment is a dramatically
changes. The urban population number increase, rural to urban migration for work opportunities
and the technological changes is modify urbanization increasment and as a shortage of adequate
land supply for hosing. However, adequate land supply for housing is only alternatives to
Improves a good city and town standards.

In adequate land supply for housing is not the only problems of developing countries, also
includes developed countries, but a problem is exaggerated developing African countries/ Like
Zambia, Gahanna, Ethiopia. In Ethiopia estimated that around 17.6 percent of the Total
Population lives in urban center with the annual growth rate of 1.2 percents. From this proportion
Addis Ababa h as a share of 40 percent of the urban population, which is little over 5.8 millions.
Although the population of Addis Ababa is growing faster than before, the land market is not
functioning efficient and equitable to absorb not only future increase demand for housing of poor
households but also the current derived demand for land (central Intelligent Agency world Fact
book 2011). However, efficient and equitable land markets are prerequisite for well functioning
cities. (Serra, M. etal, 2004). Therefore, it is essential to remove land market impediment such as
land market distortion through land speculative activities of land applicants as well as corrupt
officials, in adequate institutional capacity like inadequate skill man power and insufficient
capital. In addition appropriate land policy and regulations should be put in place towards
efficient urban land markets.

1.1 Background of the study

In Ethiopia, land tenure system and housing development of the past relation with land supply
falls under different challenges. In past land supply was not the problem when the population
size did not out strip plots supplied in Addis Ababa Ketema sub-city.
Unlike the past, today land supply in Addis Ababa Ketema lagging behind the demand for land
especially from the side of poor households in the land market, left behind the demand for land
has its own causes and effects that implied for in adequate land supply in general. Therefore,
from the main causes of inadequate land supply land policy and population past a vital role in the
case of supplying adequate plot especially for housing poor households the land policy and
regulation of Addis Ababa falls under different systems in the past more over the past land
markets of Addis Ababa were skewed to the ministry. According to Gossaye 2011 as cited Tison
L. 2005 the history of tenure system summarized and reviewed in three different periods, the first
is a periods, the first is a period from 1907 to 1974 (monarchy), second is a period from 1974 to
1991 (Derge, third is a period after 1991 up to now.

During the period of monarchy (1907 up to 1974), According to Tison b. (2005) the holding
system was private. Individuals were entitled to have plot with no limit of size and shape the plot
size could reach as large as 50 hectares. The nobilities and clergy were the main owners of the
land excluding the middle and the low income from getting access to land (Tison L. 2005).

Therefore, the poor hand not access to land even the land holding system encourage, the poor
hand not access to land even the land holding system monarchy period favors the land lands
(Elite groups) who they were higher income of that time.

During the socialist regime the private landholding system altered to public land owing system
through the nationalization of land and extra houses by the proclamation No 47/1975. The
intention of the proclamation was to achieve equity by giving the poor access to land and
housing in reveres with the previous regime. But, the central System coupled with lack of
management capacity result a serious housing deficient, particularly for the low income groups
which in turn led to further overcrowding and the growth of slums (Gossaye 2001, Tison L.
2005). This shows that poor were not favored in the proclamation of nationalizing land and extra
houses. And also, after the transitional period land holding system is changed to lease holding
system which maintains public ownership of land that the poor households left behind of their
derived demand for land through lease holding system there are different forms of lease system
to provide land in Addis Ababa which includes auction, negation, lottery methods and through
the forms of award systems. Even though there were different forms of lease system for land
provision in Addis Ababa, the poor households were not able to access the land market. The
pressure put on the accessibility of poor households for land parcel has negative effectives on the
environment via the proliferation slum and shortage of houses.

According the land accessibility problem of the poor is not only the current problem, but also the
problem in different land tenure systems in the past. The challenges of land market in Addis
Ketema sub-city are mainly due to land market distortion (land speculations and corruption),
implementation gaps of land policy and regulation, and inadequate land administration capacity
such as shortage of skilled man power and insufficient financial resources. As a result of these a
aforementioned factors create inadequate supply of land for housing poor households in Addis
Ketema sub-city. Eventually these factors result in proliferation of squatter settlements, housing
shortage and insufficient collection of land lease revenue.

1.2 Statement of the problem

Well functioning market plays a vital role in absorbing the increased demand for housing by all
income groups of the society. According to Serra, M. et al. (2004) efficient and equitable land
markets are prerequisite for well Functioning cities.

Economic and Social Commission for Asia and pacific (ESCAP, 1997). The land market most
directly affects the urban environment and the quality of cities.

Memoire A, (2010). Adds in Africa that formal land markets are distorted and skewed towards
the minority high and middle income earners at the exclusion of the poor urban majorities.
Moreover, Economic and social commission for Asia and the pacific (ESCAP, 1997) argued that
a poorly functioning land market leads to several ills including land speculation, creation of
slums and squatters settlements. Hence, poor functioning land market leads to the proliferation of
squatter settlements, and the creation of housing shortage for the poor households. Land market
distortions like land speculation and corruptions coupled with limited supply of land escalates
the housing prices and accelerate the proliferation of squatter settlements in Addis Ketema sub
city.

Nega W. (2005) stated that the issue of speculation mentioned in relation with high land and
housing prices but other factor would also increase the price. The study shows that in Addis
Ketema sub city there are people who cannot being their projects even after they have been
granted land parcel through auction forms of land lease. This implies that they wait for a time of
high price to sell the land parcel without any value add which against the urban land policy. This
is so, due to ineffective land regulations that the land administrations capacity in Addis Ketema
sub city is not adequate enough to control the land market distortion activities. This type of land
market distortion coupled with poor land administrations and implementation gap urban land
policy leads to shortage of house for poor households, creation slums and squatter settlements.
Urban authorities do not always have the means to value the social and spatial scope of slums
nor do they have the adequate land management instrument and appropriate appraisal tools
(Sietchiping, R. 2005). Gondo T. (2008) observed that most local authorities do not have
capacity to generate revenue and where meaningful revenue base exists the collection
mechanism has often been weak. Thus, inadequate institutional capacity of land administration
of Addis Ketema sub city results in insufficiency collection of land lease revenue. Not only
collecting insufficient land lease revenue in Addis Ketema sub-city in the year 2008 up to 2011
but also there is no visible plan how to access poor households for housing visa avisa of
collecting more revenue from the potential of supplying land parcels.

Due to and market distortions like, land speculation and corruption coupled with implementation
gaps of urban land policy and regulations, and poor land administrations result in adequate land
supply for housing in Addis Ketema sub city. These problems of land market in turn create
shortage of houses especially for the poor households, proliferation of squatter settlements and
insufficient collection of land lease revenue in Addis Ketema sub-city. Therefore, the study set
out assess the problem of inadequate land supply for housing poor households and suggest the
possible solutions for the concerned stakeholder agencies and policy makers.

1.3 Research objectives

1.3.1 main objectives

The main objective of the study was to assess the land supply for housing poor household in
Woreda08 in Addis Ketema sub-city towards the promotion of an efficient and equitable land
equitable land market in the sub-city.

1.3.2 Specific objectives

 Collecting primary and secondary data land supply, the specific objectives of the study were
to;

1. Analyze the causes of inadequate land supply for housing in Woreda08 Addis Ketema
sub-city.
2. Analyze the effects of inadequate land supply for housing in woreda08 Addis Ketema
sub-city.
3. Examine the trends of land supply for housing from 2008 to 2011 in woreda08.
4. Describe the implementation of urban land policy regulations for the supply of adequate
lands for households.

1.4 Research Questions

On the basis of the above specific objectives, the study set out to collect information on
the following questions.
1. Which factors causes inadequate land supply for housing and how do these causes
affect households?
2. What are the trends of land supply for housing from the year 2008 unto 2011 in
Woreda08, Addis Ketema sub-city?
3. What affect the implementation of land policy and regulations for the supply of
adequate land for housing poor households?
4. How the institutional capacity of woreda08 land administration affect land market to
words efficiency?

1.5 Significance of the study

The study findings will serve as an input for the city government of Addis Ababa to promote the
efficiency of the municipal land markets through enhanced. Adequate land supply for housing
poor households. The findings will also initiate insight to other researchers to conduct father
investigations on the major objective or specific objectives of the study to overcome challenges
in relation with land supply. This would have contributions for the overall development of Addis
Ababa in general and the Residents especially the poor households in particular.

1.6. Scope of the study

The study covered the area of Woreda08 which is within Addis Ketema sub-city administrations
area. 120 sample households were taken from 3228 total of households. In Woreda08 population
and respondents land experts at both levels of woreda08 and Addis Ketema sub city land
administrations. The study analyzed the caused and effects of inadequate land supply in
Woreda08. The study also assessed the land supply for housing trends from 2008upto2011.
Although the causes and effects of the inadequate land supply for housing varied, the study only
focused on the major causes and effects. Among these causes some of them are land market
distortions such as land speculations and corruption, implementation gaps of land policy and
regulations, and poor land administrations with as shortage of skilled man power and insufficient
financial resources. These factors results in proliferation of squatters settlements, housing
shortage, and insufficient collection of land lease revenue through creating inadequate supply of
land for housing in Addis Ketema sub city.

1.7 Limitation of the study

The study faced some difficulties that may have negative implications on the results. Despite the
fact that the study was carried out for academic purposes with in the short period of time, the
results obtained need more and detailed information so as to provide plausible solutions. The
difficulties arose from the reluctance especially of some officials to give relevant information.
The household’s sample units belied the research conducted would not able to bear a fruit or any
change for their life that they were decided not to forwards responses or being careless when
they responded, Moreover, there was a problem of availability of compiled data which is relevant
for the study in a manageable form in the study area. However, the researcher came up with a
solution for the aforementioned difficulties through awareness creations to each sample units and
through arranging proper time that is convenient to each respondent collect relevant in
formations.

1.8 Conclusion

The supply of land for urban activities in general and for housing in particular is the most deter
mental factors to the welfare of the local residents of Addis Ketema sub city especially for those
who were poor households. However, land supply for housing in Addis Ketema sub-city was not
adequate to absorb the increased derived demands for land. Such supplies of in adequate plot of
land for housing puts a variety of challenges up on the sub-city developments.
The causes and effectives of the inadequate land supply for housing varied. But,, the study only
focused on the major causes and effects of inadequate land supply for housing. Among these
causes, some of them are land market distortions such as land speculations and corruptions,
implementation gaps of land policy and regulations, and poor land administrations with a
shortage of skilled man power and insufficient financial resources. These factors result in
proliferation of squatter settlements, housing shortage, and insufficient collection of land lease
revenue through creating inadequate supply of land for housing in Addis Ketema sub city. Based
on the issues in relation with causes and effects of inadequate land supply for housing the
researcher reviewed and discussed relevant literatures in the coming chapter (chapter two).

1.9 Definition of Some Operational Terms ‘

Corruption – dishonest or illegal behaviors especially peoples in authority

Current derived demand – a timely (present) to come needs.

Distortion- gives misinformation to land authority.

Elite – a powerful person especially on monarchy period

Proliferation- uniquely spread of different damage on environments

Speculation – Guessing (not real) values to give land

Squatter settlement – without individual or some groups willingness to use lands by other
individual or groups.
Chapter tow

Literature review

2. Introduction

This section presents literatures, which are very pertinent for the study. Literatures in relation
with among others include land market, land policy, causes and effects of inadequate land supply
for housing. These were the main issue utilized extensively from the works of indifferent authors
for the purpose to develop the analysis sections.

The urban economy comprises three basic markets

The urban land markets, the urban capital market, and the urban labor market. These market, are
inexorably linked and dependent on each other, of these markets the land most directly affects
the urban environment and the quality of life in cities (Dowall, D 1993: ESCAP, 1997).
However, (Central Intelligent Agency world fact Book 2011) argued that nowadays in
Ethiopia ,it is estimated that around 17.6 percentage of the total population or 14,080,000 people
live in urban centers with the annual growth rate of 1.2 percent that it will reach 17 million or
20.5 percent after a decade. Addis Ababa has a share of 40 percentage of the total urban
population, which is a little over 5.8 million. In this manner of population growth, it is difficult
to absorb the demand side of the market of any type that will result in the slum in supply in
relation to the demands of the society.

Dawall, D. (1995) defined land market as framework through which applicants for land for
various used can acquired for it development in the required uses like commercial residential and
extra this statement implies that the land market affect many more market which may have
addressee effects up on the individuals as well as the society as a whole in urban areas. In the
same manner sera, M. Etal (2004) illustrated that efficient and equitable land markets are
perquisite for well functioning cities.

Moreover, Alnaso (2004) said that if all urban dwellers were baled to acquire land to live and
work on, with adequate infrastructure at a price they could afford governments would not have to
intervene. The private sectors not typically cater to the shelter and land needs of poor people in
urban settings so interventions are necessary.

Accordingto Arunc. Mehta, 1996 Land use in Zambia is strictly interacted and regulated by the
national government. The government is practiced land administration policy for satisfying the
various purpose based on the need of population and pectoral distribution for different sartorial
and population question to give enough answers (Arunc-Mehta 1996). Likewise lever Wife
Money W/J, and Addison R, (1993) revealed land market in Korea is strictly regulated by
national government of Korea.

Land use in Korea is strictly regulated by the national government the government forecasts
among of land needed for various purpose based on forecasts of population and the pectoral and
spatial distribution of people and economic activities it then changes permitted uses of land so as
satisfy spatial and sartorial needs. (Lever W.f., and Fassison, R 1993).

2.2 Land policy

Land policy lies at the heart of economic and social life and environmental issue in all countries
the distribution of properties right between people has a term impact on both equity and
productivity. In equitable land distribution, land tenure problem and make land administration
can lead serve injustice and conflict changes to legislation, the distribution of prosperity rights,
and administrative structure are likely to have long term consequences positive of negative for
political economical and social development, similarly land policy is also crucial for
environmental sustainability as its can create in endives for sustainable land and environmental
management (EU, 2001). However, according to the constitution of the federal Democratic
republic of Ethiopia (1991) land is a property of the state and the people Ethiopia. This land
policy of Ethiopia articulates land in and around Addis Ababa is wend by the state and the
people of Ethiopia. But it is also true that in Addis Ketema sub-city land is still owned by the
private ownership and some vacancy lands owned commensally that they can be used for the
used interests of the communities. Therefore, the land policy could have a vital relation the
economic activities of urban areas.

2.2.1 The Goals of urban Land policy

Dowall D. (1996) explained that the basic goal of urban land policy is to achieve the society –
economic optimization of land use: bringing the demand and supply of land to an equilibrium by
providing land needed for urban development in the appropriate location of the right time
effectively and equitability. Therefore, the goal of land policy is to achieve the equilibrium of
demand for land and these supplies of land insurance and effective land markets.

2.2.2 Addressing major problems of land policy

As Abreham , W. (1995) stated the rapid process of urbanization and the political change which
are taking place in many developed developing countries(Particularly at the end of the socialist
era and the transition towards the free market economy) has Greater a enormous problem of land
scarcity and land use inefficiency in their metropolitan areas. While the character and urgency of
this problem and its solution depends on the socio-economic political structure and the
development level of a countries. it said that the level of socioeconomic development, the
political change, the rate of urbanization on the historical background to the physical and
demographic characteristics of a country, are some of the factors creating the problems which
land polities seek to solve (Abreham W.1995).
Based on this argument, there should have land physical which can solve the social, economic
and political problem in relation with land. As it was stated above the land market in Addis
Ketema sub –city have a relation with other markets in the urban activities. To this end, a good
urban policy could play an important role in the development of Addis Ketema sub- city.

2.2.3 Criteria of a Good urban land policy

Doeble W.A (1983) shows that to assess whether any urban land policy is good or not uses four
criteria which includes efficiency equity, compatibility and continuity.

a. Efficiency
This efficiency test used to find out whether the land policy encourages a smoothly
fractioning land market. It permits the maximum productivity of land as a resource,
which is responsive to rapid increase in demand allowing the assembly of land as needed
to meet such demand and that is responsive to major changes in urban form whether they
result from market forces or government policy (Dsebale 1987).
b. Equity
This test is used to find out if the urban land policy provides reasonable access for all
groups( particularly those of low incomes) to land for housing, business, and other needs.
In addition it should enable the government to recapture increscent in land value when it
is socially desirable to do so (Doebele 1987).
c. Compatibility
This tests how well the land policy is able to intergraded with other policy instruments
dealing with economic development and urban and such as federal, state and local
government planning taxation and the management of public service system (Ibidem).
d. Continuity
The policy should be the type that will avoid, where possible a brought breaks with the
cultural and political system which led to existing arrangements (Ibidem).
Therefore, land policy of Addis Ababa should include the criteria of good urban land
policy like efficiency, equity, compatibility and continuity. With this aspect of land
policy the land administrations could not faced problems as to be notable example for
others. But it was common for everyone Addis Ababa to note land administration when
someone committed corruptions. This implies that the city government needs to have
strong land policy to use land resources efficiently.
2.3 causes of in adequate land supply for housing
Memories, A. (2010) emphasis that, in Africa formal land markets are distroted and
skewed towards the minority high and middle income earners at the exclusion of the poor
urban majorities. Accordingly in distorted and skewed land markets, it is true that
inadequate of land supply on the side of excluded groups of the society. In addition,
United Nations Center Human Settlement (UNCHS, 2000)
Adds, that poorly managed urbanization reads to the marginalization of the urban poor
which increases that current cost of living and defers enormous future environment and
social costs for the next generation. Therefore, the majority of the urban poor legs behind
of the land markets that affects the environment and the social welfare of the society
through the coping mechanisms of the poor to have what have left in the formal land
markets. This is happened in Addis ketema sub-city due to land in accessibility for the
poor households.

2.3.1 Cause of inadequate supply of land for housing in Addis Ababa

Dowall, D (1993) argued that in the absence of government intervention urban land
markets low income households may have difficulty for accessing land for housing. it is
quite commons for government to direct allocation land for housing these low income
group (David E. Dawall 1993). Accordingly resident land delivery is also assumed to be
conducted through two different offices, which are urban development department
(UDD) and lease Bureau. The UDD surveys and prepare plots, coordinates the
infrastructure redelivery and passes to the lease office for the allocation. The lease office
registers the applications who can afford to build the standard have propended by the
UDD. This creates so many bureaucratically oriented steps to pass through and it is
unthinkable to get land title before waiting for years Essays,A. 2007).
Therefore although the lands supply for housing is a duty of the government, it is no
organized in a short path deliver in addition to inadequate supply of plot for housing in
Addis Ababa. The major causes for this inadequacy of land supply for housing Addis
Ababa reviewed as follows.
2.3.1.1 Land speculation
Land speculation can drive land prices beyond the productivity value of the land,
causing” bubble’ land and properly market. Land speculation occurs when the demand
for land, at the present time or in the near future, outstrips the supply of land. This can be
caused by several factors both on the demands side and on the supply side. In the demand
side land speculation can be triggered by excess liquidity in the financial market caused
either by rapid economic growth or by a lack of opportunities for investors in other
sectors of the economy, in slow group economies. in either scenario investor invest in
the land market, waiting for prices to increase and sell the tenure at profit. Rampant land
speculation can drive land prices beyond the productive value of the land, causing a
bubble land and property market where prices of kind and property are overpriced
unescap. Org/huset/urban).
Both the supply and demand sides of land market affected by activities of land
speculation which creates imbalance between the demand for land and supply of land by
over pricing land above its inputs value especially for the poor. In this manner land
market has its own contribution for the disequilibrium of the land market. On the supply
side land speculation is caused by bottlenecks in the availability of serviced land with
access to basic infrastructure such as road, water, electricity etc), these bottlenecks can
caused by several factors either in the land development phases in the transaction phases.
Bottlenecks in the supply serviced land are caused by slow provision of infrastructure and
services. poor city planning, poor land records, and cumbersome producers to buy and
sell land. Bottlenecks can also occur in the transaction phase of land development. Due to
poor cadastral land records slow bureaucratic producers in can taken using time to buy
and sell land in the market and to register such transactions with government institutions
(Ibid).
2.3.1.2 Corruption
Garba (1993) argued that corruption in the land allocation process encourages the use of
land for speculative practices, and reinforces the trend towards higher prices and result in
inaccessibility of land. Accordingly land speculation is related with corruption. This is
not a far history of Addis Ababa that many of the real estate developer were blamed for
grabbing vacant land in the land markets of Addis Ababa in collaboration with corrupted
state officials.
According Addis Semen Gazette (Volume 1) crusade against real estate developers in
Addis Ababa about total of 923, 380 square meters of land in different sub city was
grabbled unlawfully; about 23 real estate developments were involved. According to the
city Administration reports on the same source, only 18 percent of a totals of 5.9 million
square mater of land distributed to 125 real estate developers since 1997 is used properly,
while the rest of plots are transferred to third parties without any construction being built
or used as collateral for loans in contravention of the land law. Therefore, the land
market bears more challenge through corruptions in which land speculations play missing
game note only for the poor but also for middle income group of the society .so that land
with corrupted and speculated markets addresses the demands of the higher income
groups of the societies by encouraging the participation of a few individuals.

2.3.1.3. Poor land Administration

According to the statements of Brennan, 1993 Sietchiping. R (2005). Significantly. Urban
authorities do not always have the means to appreciate the social and spatial scope of
slums. Nor do they have the adequate management instruments and appropriate appraisal
tools. In addition, Gondi. T. (2008) said that most local authorities do not have capacity
to generate revenue and where a meaningful revenue base exists the collection
mechanism has often been weak. Consequently, acquiring more land for allocation as
well as servicing has been difficult which results in the supply land a ways to lag behind
of demand for land. As a result of free rider problem in case of non private goods that the
public sector need to finance and to have more revenue through generating more money
from potential resources. One of the potential resources for the government is land
resource with poor land administration it is difficult to collect more revenue from land.
Thus, the local governments have to have financial capacity to develop the activities in
the ways which enables to invest more and more to assure powerful administration all
round of the land utilization to the maximum. The local government lacks administrative
capacity especially from the perspective of financial capacity.

2.4 Effects of Inadequate hand supply for housing

According to economic and social commission for Asia and the pacifistic (ESCAP, 1997)
A poorly functioning land market leads to several ills including land speculation, creation
of sums and squatter settlements environmental deteriorations, and an inefficient urban
development patterns which increases the cost of doing business in the city, and
adversely affects the urban economy. In additions, Dowell, D (1993) stated that if the
supply of land available for development is limited demand pressures for sites will derive
up save prices and rental rates and in turn increase the residuals for land bids and profits.
Therefore, such increases residual available for land bids and profit the equilibrium of the
land market negatively in the sides of supply through boosting up the prices of plot which
is accountable for intensifying the land supply challenges. Economic and social
commission for Asia and the pacific (ESCAP, 1997) argued that the land market most
directly affects the urban environment and the quality of life in cities. While the land
market affects the urban environment and the quality of life regarding poor regulations of
land this could result in a several environmental ills including, profanations of slums and
squatter settlements, environmental deterioration and in efficient urban development
pattern.

2.4.1 Effects of inadequate land supply for housing in Addis Ababa

According to Gossaye, A. 2001 as cited Tison, L.2005, the nobilities and clergy were the
main owners of the land excluding the middle and the lower income groups of the
societies from getting access to land In monarchical period.
And also, in the Derg regime (1974 - 1991) the poor were been excluded from access to
the land market. This implies that although the intention of the proclamation N0.47/1975
is to achieve equity by giving the poor access to land and housing in reverse of the
previous regime, the centralized system coupled with lack of management resulted in a
serious housing deficient, particularly for the low income groups.
In the same manner, Tison, L 2005) said that the land allocation system of today’s Addis
Ababa, be it on an individual or cooperative basis and did not favor the poor. For this
matter, there in different problems comes after the option forgetting land for housing by
poor as well as middle income group. In abroad sense the effects, of inadequate land
supply among others include loss of land revenue in the municipalities, proliferations of
slum and creations of squatter settlements.
2.4.1.1 Proliferation of slums
According to UN Habitat 2003) about 90 percent of the demand for housing has been met
by the informal sector. This shows that the demand side over folds the supply side of
normal housing market that results in more demand for housing meet through informal
market, which increase slum in alarming rate in Addis Ababa.
UN Habitat (2003) estimate, 78.2 Percents of city dwellers with in Developing Counties
(DC) lives in slums. Moreover, UN Habitat 2003) reported that nearly 38 percent slums
were in Addis ketema sub-city less than the other remaining nine sub-city of Addis
Ababa. According to Nega,W (2005), a miss mach in housing needs and alarming
population growth in Addis Ababa brought quartering.
Due to lack of resources and inability to control land uses, metropolitan policy makers in
most development countries have not performed capital city relocation task very well
(Richardson, 1993 as cited Minwuyelet, M,2005). Even though capital city relocation
plays an important role to minimize the pressure of pupation growth in the primate city
like Addis Ababa, it is not solution of the challenges of land market.

2.4.1.2 Emergences of squatter settlements in developing countries

Government investments and formal housing construction largely serve the middle and
high income groups, leaving lower income population to address their housing needs
through informal means. As a result, the urban poor in most cities of developing countries
have occupied land illegally and have built their houses with their own resources, without
following the building codes and other governmental regulations. This has led to the
proliferation of squatter settlements (Minwuyelet, M. 2005). However, Hardoy,etal
(2001) stated that urban researchers should s not forget that phenomena of illegality is not
restricted to the urban poor. May more privileged groups of the society are also observed
in squatter settlements. Squatter settlements are mostly concentrated in the peripheral
areas of large cities, on steep hillside, river porgies, and flood plains. The main reason
for the expansion of squatter settlements on these fragile slopes and hazards areas is that
land is very cheap or can be occupied without payment, and also there is less possibility
of eviction from such sites (Minwuyelet, M., 2005).
Therefore, the expansion of squatter settlements core causes could be the less possibility
of eviction from sites in the peripheral areas of large cities. On steep hillsides, river
gorges, and flood plains areas and the cheaper prices of such sites. Thus, so as to attain
land demand of the poor well as privileged groups of the society were involved in the
squatter settlements.

2.4.1.3 Loss of Land Lease Revenue in the Municipalities

The revenue generation from the land lease is far apart what could generate to provide
infrastructure and house for low income groups. According to Garba, 91993) statement,
corruption in the land allocation process encourages the use of land for speculative
practices and reinforces the trend toward higher prices and a resultant inaccessibility of
land. As result of these land speculative practices, the municipalities fail to collect the
revenue from land lease. Therefore, in the speculative land market, revenue from land
resources divert partially to the advantages of speculates at the expanse of the
municipalities.
Supply and demand for residential properties are both at unprecedented high levels.
While prices are being driven higher by site and other development costs, the scale of
demand is in excess of the industry’s ability to supply at this point, thus driving prices
higher. (Ireland business news). So that many of the land demander are discouraged by
the higher prices to have that they demanded. In this case the municipality fails to
generate revenue from demanded of land for housing.

2.5 Conclusion
The literature section above demonstrates that the land policy and its challenges could
play the maximum games of land delivery for housing and for other activities. In
addition, the causes and effects of inadequate land supply were discussed through
referring other scholarly literature to assess whether the land was supplied efficiently or
not, in Addition to this land speculation, poor land administration and loss of land lease
revenue in the municipalities were the major issue discussed in the literature section
above.
 Chapter three
Methodology of the study
3. Introduction

This section presents sample designs, source of data, and data analysis and interpretation,
Description of the area, in addition to data presentation and research approach.

3.1 Research Approach

The research used cross-sectional survey which includes analysis, measurement, and assessment
of both quantitative and qualitative data by using counts and presents. This is so, to demonstrate
implications by describing land supply for housing with in Addis Ketema sub-city. The
qualitative data used to show the implementation of land policy and regulations to supply land
parcel for housing at the Woreda administrations of Addis Ababa city government. And also, the
qualitative data used to show the institutional capacity of Woreda08 land administrations. This is
done by swathing the employment performances of Woreda08 land administrations. The
quantitative data used to see the quantity of plot of land supplied for housing and the amount of
the revenue generated from the land lease with in the study area during the year 2008upto2011.

3.2 Research methods

The study used descriptive research design to address the objectives of the causes and effects of
in adequate land supply though collecting primary and secondary sources of data us land supply
for housing in Addis Ketema sub-city. The main reason for using descriptive research design was
that could ensure to get relevant information on land supply for housing and to show the factors
and impacts of inadequate land supply for housing Addis Ketema sub-city.

3.2.1 Research techniques

In line with descriptive research design, the method followed for data collection was a survey
method.

3.3 sample design

The study drawn sample from Woreda08 household by using probability sampling and land
experts of land administrations through no-probability sampling. In addition to the sample
representative and research findings relevant and accurate, the sample design was structured as
follows.

3.3.1 Sample unit

The sample unit of this study was 120 households of woreda08 land exprts in land
administrations of the study area. selected sample units were the source of relevant information
of the study that they were affected by the land supply system of Addis Ketema sub-city either in
the supply side or in the demand side of land market.

3.3.2 Sampling techniques

The sampling techniques used in the were probability sampling Drawing samples from
Woreda08 households and the staff members of land administration in woreda08 and Addis
ketema sub-city by using simple random sampling method. The study selected woreda08 from
the administrations of Addis ketema sub-city based on purposive sampling together the relevant
information on plot supply for housing.

3.4. Source of data

The data on land supply for housing in Woreda08 was collected from both primary and
secondary sources. Primary data in land supply was collected from Woreda08 household and
staff member of land administrations by using data collections tools like, questioaires, personal
interview and observations. While secondary data on the land supply for housing was collected
from different scholarly literatures, official documents of Addis Ababa land administration’s
policy and regulations of urban land and on line information from internet.

3.4.1 Primary data sources

3.4.1.1. Questionnaires
A variety of data collection instruments used to gather primary data among which one is
questionnaire. The study utilized both close- ended and open –ended questionnaires. The
questionnaires were provided to each categorical group of respondents simultaneously.

3.4.1.2 Interviews

Where to collect primary data through interviewing semi-structured questionnaires developed

and after pretest the questionnaires translated in to local language. The data has been collected
through interviewing the respective land experts in land supplied department at both
(Woreda08and sub-city) level of land administrations and managing director of Woreda08
administration.

3.4.1.3 Observations

The study systematically and carefully observed what has been done on the pracel of land
supplied and the type of investment on the supplied plots of land in woreda08. This is done based
on selected terms of reference like weather the supplied plot used for intended goal or not and
who got the plot from the formal and markets through land lease to check whether there was
informal land market or not.

3.4.2 Secondary data sources

Secondary data on the land supply for housing was collect from different scholarly literatures,
official documents of Addis Ababa land Administrations, policy and regulations of urban land,
an on line information from internet.

3.5 Data analysis and interpretation

After quantitative raw data was collected using questionnaires, it was organized and
preprocessed test been carried out. Responses on these questions were carefully summarized.
Outputs categorized in to deferent components relating relevant variables for convenient use in
analysis of findings. After qualitative data collection through questionnaires, interviews, and
observations, put in to different
Categories variables major them were identified and analyzed the magically in line with research
questions are summarized in descriptive analysis.

3.6 data presentation

Data is presented using statistical techniques of frequency distributions, tables, groups and
teachers specifically percentiles and lower counts used to present collected data in relation with
number of supplied plot for housing and among of collected revenue from plot supplied.
Explanation also clarified information on observed data.

3.7 description of the study area

Addis Ababa is a capital as well as the political and cultural centers of Ethiopia and an official
diplomatic capital of Africa head quarter of united nation Economic Commission for Africa
(ECA). Moreover, she serves as the head quarters Africa Union (AU) since 1963. In 2004, the
population size of the city is estimated to be around 5.8 million exceeding more than thirteen
timed than of the second city (Dire-Dawa) ORRAMP, 2002, Tison L 2005). However, Addis
Ababa is one of the least developed cities in Africa facing a major challenge of slums
proliferation. According to Tison L. 92005) estimation, out of the total housing demand 50% is
satisfied by the informal housing sector that it contributes proliferation of squatter settlements in
the city. Tison L. 2005) argued that Addis Ketema sub city it one of the ten sub cities in Addis
Ababa that the major parts of it found commercial expansions areas of Addis Ababa. The land is
dominantly used for residential and commercial purposes. The population of sub city is around
225, 092(Central statistic Agency, 2007). The population of woreda administration is around
3228 and which is located in the Eastern part of Addis Ketema sub-city.

3.8 conclusions

The study intended to assess land supply for housing in the land market of Addis Ketema sub –
city. The study used descriptive types of research to see the causes and effects of inadequate land
supply. Both qualitative and quantitative primary data gather through questionnaires, interviews,
and observations. The study also reviewed secondary data from different scholarly literatures,
official documents of Addis Ababa land administration policy and regulation of urban land, and
online information from internet. in addition to these sample design, data analysis and
interpretation data presentation and description area are included in above.
 CHAPTER FOUR
RESULTS AND DISCUSSION
4. INTRODUCTION

This chapter mainly presents and discusses the data obtained from respondents related to the
existing situation of the supply of land for housing the poor in Woreda08, Addis Ketema sub-
city. To this end, this part covers discussion of the trends of land supply and causes of inadequate
land supply for housing. The poor especially land speculation, corruption, and gaps
implementation of land policy and regulations, and inadequate institutional capacity of land
administration in Woreda08. The discussion further examines the effects of inadequate land
supply for housing the poor such as slum proliferation, insufficient land lease revenue a
collection, and shortages of housing. 80 percent of the respondents give response to the questions
provided to gather information on the supply of land for housing.

4.1Demographic Data

4.1.1 Socio- demographic characteristics of respondents responded age, sex, And marital status
presents under this section that it indicates the demographic data of the respondents. This shows
which parts of the society in the study area involved as respondents.

Figure 1: sex of Respondents

120

100

80

60

40

20

0
Male sex Female
 Source: Field survey 2013

From 102 respondents of the above figure, 52% were male, and 48% female. Sex is an important
aspect of urban land access that it is associated with differences in education levels, source and
amount of money to have parcels of land. Figure 1 shows that there was significant number of
female households (48% of the respondents) who had applied for land for housing in Addis
kelema sub city, Woreda08

Figure 2 Age structure of respondents by age- group

Below 24 age

17% 13% 24 -50 age

51-64 age

44% 26% Above 64 age

Source: Field survey 2013

As figure 2 depicts, the majority (44%) respondents were in the age category 24 and 50 years,
26% were in the age category of 51-64 years, 17% of respondents were below 24 years of age
and the rest 13% were above 64 years of age. The ages of households has paramount that it
provides an indication of the demand for plot for housing. In addition to these, it is a useful
factor for predicting the potential future demand for land in the city, Addis Ababa as well as In
the study area. For example, a predominance of adult households who have not fulfilled their
demand for land for housing would normally suggest that the supply of land were not adequate
enough to satisfy the demand for land. Moreover, if predominance of young households who
have demand for land would normally show that the potential future demands for land in the city.
Therefore, figure 2 discuses 44% of the respondents were in the age group of 24-50 years which
means this age group revealed the highest demand for land in the study area.
 Figure 3: composition of Respondents by marital status

Married

20% 36% Single

Widowed

14% 30% Divorced

Source: Field survey 2013

As the marital status figure 3 of respondents indicated, 36% were married 30% were single 20%
widowed and 14% were divorced more of the respondents were married (36%) that in can be the
case when people get married, households size increase due to the forth coming generations. As
a result of increased population the demand for land also increased

Figure 4: status of respondents by Educational level

certi
Elementary Secondary Degree Diplomas
level ficat
e

Sourse:Fild survey,2013
As the education level figure depicts, 32% respondents were with elementary level of education,
both with diploma and degree and above respondents were 24,5% each, respondents with
secondary level of education were 13% and only 0.05% were with certificate. Thus, more of the
respondents (32%) were with elementary level. This shows residents of the study area occupied
land before the city expands out words.

4.2 Results
Finding of the study concerning land supply for housing in Addis ketema sub-city
discussed under this section as follows
Figure 5: Respondents income per month
70

60

50

40

30

20

10

0 below 250 251-850 851-1400 above 1400

Frequency
Source: Field survey 2013 percentage
Figure 5 above indicates that 26% of the respondents earned less than 250 Birr per month.
Whereas, 44% of respondents earned in the income category of 251-850 birr per month, and 17%
earn 851-1400 Birr per month, While, 13% of the respondents earned above 1401 Birr per
month. This shows that there is high –level low –income group that in turn affects households
access to land in Addis Ketema sub-city.

Figure 6: Respondents with their own Housing

100

80 With own house

60 Without own house

40

20

0
Source: Field survey 2013
Frequency perce ntage
Figure 6 depicts that 73% of the respondents do not house and 27% own house. This shows that
the respondents without their own houses were twice as many as the respondents who own their
houses in the study Area. However, it is not denied for any one an ambition to have houses,
which is one of the human necessity goods. Thus, it is clear that there was an ambition to have
plots especially for housing whether it may be tied with paying ability or not.

Table 1: with their own house respondents plot size

Plot size Less than 150m2 Between 150-500m2 Above 500m2

Frequency 3 32 7
Percentage 7.14 76.19 16.67
Source: Field survey 2013

Table 1 above shows, out of 42 of respondents with their own house 32(76%) have plot size in
between 150 and 500m2, 7(17%) got plot size above 500m, and only 3(7%) respondents with
their own houses got plots less that 150m2

Figure 7: Respondents way to obtained land for housing

 Source: Field survey 2013

Majority of the respondents (43%) among those who obtained land for housing purchased land
informally, 31% obtained land through inheritance, 24% obtained plot through formal purchased
and only 0.02% obtained by gift according with figure of above. This implies the majorities of
respondents with own house purchased land for housing in informal land markets.

Figure8: Applications for land

years Residential commercial Residential and apartment others

commercial

2008 ss Plot size(m2) ss Plot ss Plot ss Plot ss Plot

size(m2) size(m2) size(m2) size(m2)

3 1352 8 6894 7 2815 - - - -

2009 5 2328 12 14271 9 5162 1 218 - -

2010 17 9864 19 18626 12 9611 2 1260 1 300

2011 26 14860 21 21198 15 12,176 5 1960 1 300

Total 51 28,404 60 60,989 43 29,764 8 3438 2 600

sum

sourse:Addis Ketema sub-city Land Administrations Department,2013

Table 2above shows the supplied plot for different actives of lease system in Addis Ketema
sub-city during the past four years. During these four years residential plot were supplied in the
year 2008 that was 3 in quantity and 1352m2 in size .Also, plot for residential 2009m2 was 5 in
quantity and 2328m2.a given the above four year data presents the increasemental position of
residential plot as well as in year (2011) was a good increased number compared to past 3
consecutive years. So that, in year 2011 a good accessibility of both quantity and size compares
with other plot supplied for different activities. Although it was possible to see the supply of plot
in quantity as well as in size in the study area, it is impossible to see the demand pattern of plot
except respondent’s response. This was happened that the land administration of the study area
was not accepting application for plot in any means rather than participation in the lease systems.

Table 3: land revenue from supplied plot in Addis ketema sub city (2008-2011)

Forms of lease system Plot No Plot size(M2)Prepaid manly Total payment of

lease (Birr) lease (Birr)
Auction 118 589 60 - -
Negotiation 32 648,954 16345206.54 72, 618, 638
Assignment 6 12000 Change free Charge free
Total sum 156 719914 - -
Source: Addis ketema sub-city land Administration Department, 2013.

The above table 3 indicates that how much have been collected the land administration of Addis
ketema sub-city from the plot supply for different uses through auction, negotiation and
assignments forms of land revenues in the previous years. During the past four years the city
administration of Addis Ababa has been supplied 156 plots in number and 719914m 2 plot in size
with in Addis ketema sub city. Although there is some progress, the municipality is still weak in
collecting revenues.

Figure 9: beneficiaries of land supply for Housing

Higher income group

Middle income group

All income group

Sources: field survey, 2013

Figure 9 shows that 67% of the respondents responded the majority of beneficiaries of the land
supply was higher income group. 25% of the respondents agreed in which the activities of land
supply benefited the middle income groups of the societies. Whereas, 8% of the respondents
responded all income groups could be benefited from the land supply of the study area. From
figure 9 above, we can have in sight about the land supply that it favors higher income group
within the study area.

Figure 10: Respondents options to get land for housing

Squatting Percentage

Frequency

Out going to plot available

Waiting appropriate

Land policy regulations

Source: Field survey , 2013

The above figure 10 depicts that 47% of the respondents waiting for appropriate land policy and
regulations to get plot for housing. While, 37% and 16% of the respondents forwarded the option
to get land is moving an area where no problems of plot availability and settled in squatter
settlements, respectively. This implied that households without houses tried to have house even
in squatting with a high probability of demolition. Even though in urban area land is scarce in
relation to population size for all income groups, poor often victimized and faced accessibility
problems in average time. To this end, poor lags behind of their demand for land which is
indispensable for wealth creation. Logging behind of land supplies plays its own part not uplift
the poor from vicious circle of poverty that it intensifies the environmental problems of the area.

Figure 11: perceptions of land experts about the effects of in adequate land supply.

Percentage

Squatting Frequency
 Rental house

Source: Field survey, 2013

As it is indicated in figure 11, majority (42%) of the respondents responded that the effects of the
inadequate land supply forced people, who they did not have access to plot, to rental house. 25%
of the respondents suggested that the inadequacy of land supply leads to increasing squatter
settlements. Generally, this figure implies that the effects of inadequate land supply leads people
to live squatting and rental houses.

Table4: Residents perception on land speculation in Addis ketema sub-city land markets

Land speculation Present Absent

Frequency 90 30
Percentages 75.48 24.52
Source: Field survey, 2013

As it is indicated in the above Table 4, 75% of the respondents would perceived that the land
market of Addis ketema sub-city affected by the land speculation activities which in turn affects
the poor not to get plot for housing. 25% of the respondents perceived that the land market of
Addis ketema sub-city not affected by the land speculation activities. Thus, majority of the
respondents perceived that the land markets of Addis ketema sub-city were affected by land
speculation activities in order not to have accessibility of plot for all income groups.

Figure 12: respondent’s perception of the preconditions to get land for housing

26% Residence

50% Demand for plot

24% financial capacity

Source: Field survey, 2013

The urban households, especially the poor income groups often lack access to land, which is
indispensable for wealth creation, and means of income generations. As it is indicated in the
above figure 12, 50% of respondents perceived that the capability of financing the cost of
constructing house as to be a preconditions to get land for housing. whereas, 26% and 24% of
respondents forwards to get plot for housing being residents of the area and having plots demand,
respectively.

Figure 13: Respondents perception on financial capability to get long for housing

Frequency

Percentage
Source: Field survey , 2013

Figure 13, above shows that 56% of respondent agreed on the financial capacity would have
been the case to get land for housing. The remaining respondents (44%) perceived in opposite of
the majority that financial capacity could not give due attention to have plot for housing. Thus,
the majority of the respondents agreed up on financial capability as a precondition to get land for
housing

Figure 14: respondent’s source of Money to get Land Parcel

Frequency

Percentage

Monthly selling other asset saving loan Gift

Source: Field survey , 2013

The above figure 14 indicated that 44% of the respondents would have saving habit to get parcel.
33% of the respondents could have financial power by selling other asses if they got the chance
for a plot. The rest 20% and 3% of the respondents forwarded the sources of money to finance
the opportunities of plot access through loan and monthly income, respectively.

Capacity of land administration Yes No

Frequency 4 8
Percentage 33.33 66.67
Source: Field survey, 2013
As shows in table5, 67% of the land supply expertise has an opinion that the land administration
capacity was not powerful enough to supply land as per application for plot if the application for
plot is acceptable. 33% of the respondents had an understanding for the possibility of adequate
plot supply as per plot applications in the study area. Thus, majority passed that the capacity of
land administrations is not powerful to supply adequate plot.

Figure 15: respondent’s perception of unacceptability of plot Application

Lack of appropriate land policy regulation and

Attention for housing

Institutional problem of land administration

Political influence of higher officials

Lack of political commitment

Source: Field survey , 2013

The above figure 15 shows us, 56% respondents said that lack of appropriate land policy
regulation and lack of attention for housing were the core problems of plot inadequacy. 32% of
the respondents were agreed up on the institutional problems of land administration which bears
inadequacy of plot for housing. Likewise, 9% and 3% of the respondents suggested that the
political influence of higher officials and lack of political commitment hinders residents from
processing land, respectively. Thus all the above limiting factors a factor were the problems of
land accessibility in Addis Ketema sub-city.

Figure 16: Respecting Land Policy Regulation

Agreed

Strongly agreed

Disagreed
 Source: Field survey, 2013

As seen from the figure 16, majority (60%) of the respondents from the staff members agreed up
on the land policy regulation were been respected in due process of their job. About 22% of the
respondents strongly agreed with respecting land policy regulations. The remaining respondents
responded disagreed and undecided proportionally (18%). thus, this figure 16 shown us, majority
of the respondents were agreed up on respecting of land policy in due process of land delivery as
well as other activities.

Figures 17: land Experts opinions on capital investment in land

10% Agree
70%
70% Disagree

20% Strong disagree

Source: Field survey , 2013

Although land scarcity is the problem everywhere in urban areas in relation to population size,
assigning capital for the development of plot for housing is low in contrary with the demand for
plot. to this end, all income.

Groups of the society lag behind of their demand for land. Therefore, the above figure 17 depicts
that 70% of the respondents disagreed with the amount of capital assigned to deliver adequate
plot for housing it is not comparable with the demand for it. 20% of the respondents had an
opinion on sufficiency of capital assigned to land supply. Whereas, 10% of the respondents
responded that they had strong disagreement with capital budget assigned to plot developments.
Therefore, majorities of the respondents forwarded that the capital budget assigned to plot
development was not adequate enough to absorb the demand for plot.

Table 6: Woreda08 land Administration department Employed staff

No Departments of land Existing employees in Expected employees Achievement

administrations numbers in no in %
 1 Land administration and 6 10 50
building
2 Land banks and 1 4 14
revitalization project
3 Urban planning 2 3 48
Total 9 17 48
Sources: personnel Department of woreda08 Administration, 2013.

As can be seen table 6, from the 17 employees in the staffing plan only of plots were covered
which 48% achievement was. Hence, the limited capacity of manpower both in quality and
quantity highly contribute for the adequate land supply and other activities of the department as
well as the administration of woreda08.

4.3some additional Interpretation on from results

4.3.1 Current situation of urban land delivery system in Addis Ababa
4.3.1.1 the process of plot supply for housing

Supply of land plays the most determinant and vital role in the Development activities
of the city. Appropriate land policy with smooth, transparent and non bureaucratic ways
should be in place to get a developed city. This enables urban dwellers to access plot for
housing and for other economic activities such as commercial and industrial as well. With
reference to urban land policy, supplying land for residential, commercial and industrial
purpose is the responsibility of Addis Ababa land administration as a whole and land
administration of Addis ketema sub-city specifically.

However, the process to get in Addis Ababa was confusing and subjected to a long and time
consuming process. This is because of land supplying process was not manipulated in according
with the interests of land demands rather as per supply department of land administration. Also
the process comprises a number of bureaucratic stags involving different government offices.
Based on the information from Addis ketema sub-city, currently urban land for residential uses
delivered through lease system in the form of auction in the sub –city. At the center of Addis
Ababa city administration plots delivered in the form of assignment and negation.
In fact it is too difficult that to think the way of plot acquisition for the in the current status for
plot delivering system in Addis Ababa. This is true in the subsidy that the plot is supplied in the
lease system through auction base. The auction based plot supply grants the plot on higher prices
of the bids of the day with the participants of all interested individuals of the higher income
group as well as middle income groups. Moreover, at the center of the administration plot is also
possible to supply though assignment and negotiation, which is unthinkable for the poor to get
plot that it invites any investors who do have the interest to invest more according to the stands
of the area visa a visa of the competition for business.

Based on the information obtained from the municipality, even the supply of plot through
different forms of lease system is possible, it is costly and the majority of the applicants received
plot of land through a long time consuming process which takes as average more than two years.
Moreover, plot supply for housing process was not considering the interest demand for land. In
figure six in finding section, seventy three percent of the respondents who they had not houses
ambitioned to get land for housing indifferent mechanisms like: waiting for appropriate land
policy regulations,moving an area where no problems of plot available and settled even in
squatter settlements. The respondents demand for land indicates even to accept the risk
demolition by squttering as alternatives to get plots illegally.

According to findings of the study in table three, during 2008 up to 2011 within Addis ketema
sub –city one hand read eighteen plots for housing were supplied through auction forms of lease
system. Besides, Addis Ababa land administration at the center supplied one hundred ferity six
plots for residential, commercial and industrial purposes during July 2008 to December 2011.
However, the supplied plot was incomparable and inadequate to absorb seventy three
percentages of respondents demanded plots for housing in the study area. From this discussion
one can conclude that to have a plot of land for housing is not an easy task with in Addis ketema
sub-city. Thus, the residents suffer accessibility problems of plot for housing which in turn
creates shortages of housing.

4.3.2 causes of inadequate land supply for housing

Government of Ethiopia revised the leas policy by proclaiming gap a proclamation No 272/2002,
which aimed transfer urban land by lease for Afair price, with the principles of free market. This
is to achieve overall economic and social development, and progressive urban development in
Ethiopia. However, the land marker was not fair to achieve the intended goals of the revised
proclamation number 272.2002 in the study area. This is due to different factors like land market
distortion such as land speculation and corruption, implementation gaps of land policy and
regulations, and poor land administration with a shortage of skilled manpower and insufficient
financial resources. From the result obtained in figure nine, the land market is not functioned
well to absorb the increased demand of poor households for housed in Addis ketema sub cit.y a
poorly functioning land market leads to several ills including; land speculation, creation of slums
and squatter settlements. It also creates housing shortage for the poor households.

The issue of speculation has a relation with a high land and housing price but other factors would
also increase the prices.

4.3.3 effects of in adequate land supply for housing

Land is basic resource for urban development that urban government needs to have an ability to
manage to the betterment of residents. One components of land administration is land supply
system that enables to get urban dwellers plots housing. However, ineffective and inefficient
land supply system affects the urban development through different affairs of social, economical,
and environmental aspects. Moreover, residents obliged to live in slums.

According to information gathering from the Addis ketema sub city the supplied plot through
auction forms of land lease was not sufficient that it was one hundred fifty six in number and
seven hundred nineteen thousands nine hundred fourteen meters squares in size during past four
years. But also, it was subjected to length time and process that dissatisfy the applications for
plot.

Unbalanced land supply system in relation with resident’s ambition for plot causes different
impacts up on the development aspects of Addis Ababa. One of the impacts for inadequate land
supply of housing is insufficient collection of land revenue. Only sixteen million three hundred
forty five thousands two hundred six Birr and fifty four cents of prepaid money were collected
through negotiation forms of lease with the Addis ketema sub-city during 2008 up to 2011. In
addition to low collect revenue, the land administration had not clear plan to collect revenue
through this forms lease system with the reverse of a potential to collect more.
One of the impacts of inadequate supply land for housing is residents option to settle in
squatting. In the response rate in figure eight of the discussion part seventy six percents of the
respondents for words that they may try to get land for housing through squatter settlements. this
shows the ambition of the residents to get plot without legal claims and without authorization
from the concerned authority.

Implementation of Land policy and Regulations

According to the present urban of land policy of Ethiopia, it is not allowed to have a transaction
of land parcel like other commodities in the market without the consents of concerned organs of
the government especially land administration offices. But information gathering from
respondents of the study, in Addis ketema sub-city there was a transactional of land percent like
other commodities without consent land administration offices. Information from the
respondents indicated that the majority, which is forty-three percent of the respondent owned
land through informal purchase out of forty two respondents with their own houses. This act is
not only illegal but also diversified the problems through demolishing the house that the country
loose so much from economic dimension. Thus, this indicates the gap between the land policy
drafted and the implementation within the study area. In addition, sixty seven percentages of
staff member’s respondents in land administration forwarded that the land supply in Addis
ketema sub-city. Benefited only higher income groups of the society. This means, the poor and
middle income groups benefited below thirty three percentages of the activities unlike what has
been aimed to draft land policy to benefit the societies as a whole.

4.3.5 Institution capacity of land administration

Land is unique than the other commodities which can affect the city developments with
imbalance between the demand for land and supply of land. As a result of this unique features,
land needs to be managed well to extract more and more from the resource which is limited in
supply especially within the urban areas. According to the information from different source
indicates that the institutional capacity of land administration of the study area is not adequate
enough to administrate more hopefully to absorb increased demands of the society. Likewise, the
interview conducted with general managers of woreda08 administrations and information’s from
respondents one of the majority reasons for inadequate supply of land for housing can be poor
capacity of land administration epically in woreda level. The land administration institutional
capacity can be explained interims of human recourses. According to information from
woreda08 forty eight percent of employments were achieved in woreda08 land administration.
As a result employment gaps, the land administration capacity of the woreda is low. one of the
major or reason for unacceptability of application for plot in woreda08 was low capacity of land
administration in addition to suspecting for prevalence of corruption if it is possible without
powerful system of anti-corruptions system. Moreover, there was inability of unavailability of
important materials, human and financial resources in woreda08 land administrations.

4.4 conclusion

This section presented the findings of the students by using tables, charts and pie charts, and
interpretation of the results. Land administration of Addis Ababa was not able to provide land for
all groups of the society equitably. Hence out of 120 respondents 73% do not own house even
they tried to plot for housing. 67% of the land expert respondents agree the main beneficiaries of
the land supply were higher groups. 56% of the respondent agrees upon the lack of appropriates
land policy and regulations, and lack of attention for housing were core problems of plot in
adequacy.

About 42% of respondents with their own housing got plot for housing from informal purchase
of the land markets. This shows that there is more informality plus residents ambitioned to have
plot even with the risk of demolitions after illegally settled.

In addition the land administration capacity is inadequate in terms of human, financial and
materials recourse in order to control the impact as well as the system of land supply in Addis
ketema sub-city.

List of tables and charts

Fig1 sex of respondent

Fig2 age structure of respondents

Fig3 compositions of respondents by marital status

Fig4 status of respondents by education level

Fig5 respondent’s income per month

Fig6 respondents with their own housing

Table1 with their own

TABLE OF CONTENTS

CONTENTS PAGE

1.4 Statement of the problem -----------------------------------------------------------------

1.5 Research objectives -------------------------------------------------------------------------
1.5.1 main objectives ------------------------------------------------------------------------
1.5.2 Specific objectives ---------------------------------------------------------------------
1.6 Significance of the study -------------------------------------------------------------------
4.6. Scope of the study ---------------------------------------------------------------
1.7 Limitation of the study------------------------------------------------------------------------
1.8 Conclusion --------------------------------------------------------------------------------------
1.9 definition of operational terms ‘-----------------------------------------------------------
Chapter tow
Literature review ------------------------------------------------------------------------------------
5. Introduction ------------------------------------------------------------------------------------
2.2 Land policy ---------------------------------------------------------------------------------------
2.2.1 the goals of urban policy -------------------------------------------------------------------
2.2.2 Addressing major problems of land policy --------------------------------------------
2.2.3 Criteria of a Good urban land policy ----------------------------------------------------
2.3 causes of in adequate land supply for housing --------------------------------
2.3.1 Cause of inadequate supply of land for housing in Addis Ababa --------
2.3.1.1 Land speculation ------------------------------------------------------------------
2.3.1.2 Corruption--------------------------------------------------------------------------
2.3.1.3. Poor land Administration------------------------------------------------------
2.4 Effects of Inadequate hand supply for housing -------------------------------
2.4.1 Effects of inadequate land supply for housing in Addis Ababa---------
2.4.1.1 Proliferation of swam-------------------------------------------------------------
2.4.1.2 Emergences of squatter settlements in developing countries ----------
2.4.1.3 Loss of Land Lease Revenue in the Municipalities ------------------------
2.5 Conclusion -------------------------------------------------------------------------------
Chapter three
Methodology of the study -----------------------------------------------------------
6. Introduction --------------------------------------------------------------------------------
3.1 Research Approach -----------------------------------------------------------------------
3.2 Research methods -------------------------------------------------------------------------
3.2.1 Research techniques----------------------------------------------------------------------
3.3 sample design --------------------------------------------------------------------------------
3.3.1 Sample unit---------------------------------------------------------------------------------
3.3.2 Sampling techniques---------------------------------------------------------------------
3.4. Source of data ------------------------------------------------------------------------------
3.4.1 primary data sources--------------------------------------------------------------------
3.4.1.1. Questionnaires ------------------------------------------------------------------------
3.4.1.2 Interviews ---------------------------------------------------------------------------
3.4.1.3 Observations ---------------------------------------------------------------------------
3.4.2 Secondary data sources ---------------------------------------------------------------
3.4.5 Data analysis and interpretation------------------------------------------------------
3.6 data presentation ---------------------------------------------------------------------------
3.7 description of the study area--------------------------------------------------------------
3.8 conclusion --------------------------------------------------------------------------------------
CHAPTER FOUR
RESULTS AND DISCUSSION-------------------------------------------------------------
7. INTRODUCTION------------------------------------------------------------------------------
 4.4 Demographic Data -----------------------------------------------------------------
2. Results--------------------------------------------------------------------------------------
4.5 some additional Interpretation on from results ----------------------------
4.4.1 Current situation of urban land delivery system in Addis Ababa----
4.4.1.1 the process of plot supply for housing ---------------------------------
4.4.2 causes of in adequate land supply for housing
4.4.3 effects of in adequate land supply for housing
4.4.4 Institution capacity of land administration
4.5 conclusion